Link:
http://money.cnn.com/2009/04/03/news/economy/jobs_march/index.htm?postversion=2009040318
Summary:
Recession or depression? As we look at the U.S and the world's economy, what are we currently in? Unemployment is now at a 25 year high, employers have trimmed 663,000 jobs from their payrolls last month, 5.1 million jobs have been lost since the start of 2008, and the economy shows little signs of improvement. Of the 663,000 jobs lost last month, many of the layoffs have yet been implemented, which means even more jobs are lost than it is said to be. The unemployment rate has climbed from 8.1% to 8.5% in February. Ever since 2008, when the recession began, more than half of the jobs lost have been in the past five months. The manufacturing industry has lost 161,000 jobs, the construction industry has lost 126,000 jobs, and the professional & business services industry has lost 133,000 jobs in March alone. The only areas of increase have been in education and health care, and they have only added a modest 8000 jobs in the month. In conclusion, the typical length of time people are out of work now stands at an average of 20 weeks, and the average hourly work week has now dropped to 33 hours, which means we have a lot of work to do before we are out of this recession.
Connections:
Many connections were made between the article and accounting in general. To start things off, the main goal of all companies are to get the maximum amount of profit. All the industries and companies laid off their employees because they had to. They were not making enough profit to sustain their company and still prosper. If the companies did not cut down on their expenses (ie. wages) they would go bankrupt eventually. Linking the lay off of employees to the accounting I've learned in the textbook, the process is not that simple. It includes procedures regarding the 'registered retirement savings plan', of which some people might consider as a backup plan if they start running low on money because they do not have a job, the Canada pension plan, and unemployment insurance, for when they are unemployed. The next connection I made was about wages - payments to workers for their work, on an hourly basis. The average hourly work week is now 33 hours and that is not a good sign for the economy. That means the gross pay for employees drop because the average or normal was about 40 hours a week before. Another connection I made that doesn't directly relate to the article but still can, is regarding the issue of interest and loan rates. If the banks just reduced their rates, companies would be able to pay off their debts and loans, therefore making the company more successful. In doing this, companies would have a higher current ratio and a higher quick ratio (a lot more assets than liabilities), and this would mean companies would not have to lay off as many employees. During this recession, there are many steps to be taken before we can finally get ourselves out of it (which lies in the hands of Obama really...), and just like accounting, we must follow those steps and procedures to get the job done!
Reflection:
University and college graduates. The article has a side link regarding those graduates, and how it will affect them more than the people currently working. How are they going to get a steady job that will support themselves, let alone maybe their own families? Some say that the recession or depression will end by 2013, but there are books that predict that we will have another recession starting in 2013 because of the retiring work force. As of the current problem we have now, I believe that we should freeze the work hours and wages, and hope to ride out the recession. I would love to say, "The government should help out by stimulating the economy", but it would be unrealistic as they themselves are in debt as well. It seems as though there are no solutions to the problem that we have gotten, or the U.S has gotten us into. Of all countries, Canada is not as affected because of their banking system, which is great, but the news of the recession just shows us how bad the economy really is. So I would like to ask the potential readers of this blog, what do you think it will take for us to get out of this problem we have? And how soon do you think we can resolve this problem?
Sunday, April 5, 2009
Monday, March 23, 2009
Accounting 12 - Chapter 16
Link: http://www.cbc.ca/money/story/2009/03/22/chrysler-union.html
Summary:
The economy is now in recession and companies and workers are suffering. Here is another case. As you might have heard, Chrysler's minivan assembly plant in Windsor, Ontario, has laid off many employees and has plans to close down the plant as well. Closing down the plant would include the layoff of more than 5000 workers! This is why Chrysler and the Canadian Auto Workers (CAW) will begin talk aiming at reaching an agreement on worker concessions in advance of a looming deadline for the troubled automaker to receive billions in emergency loans from the Canadian and U.S government. The two sides both have different ideas on what the plan should be in order to get them out of the trouble they are in. The CAW believe that the union should stick to pattern bargaining, meaning it will ask Chrysler to accept a deal similar to the one that General Motors accepted upon earlier in this month. Chrysler described the plan as "unacceptable" to Chrysler, and threatened a complete pullout from Canada if the company did not get what it needs from workers and the government. The CAW hope an agreement can be made by the end of the week.
Connection:
Wages and Unemployment Insurance Deductions were the connections i made between the article and chapter 16. The CAW believes that Chrysler should stick with pattern bargaining, which includes the freezing of wages until 2012 and adjustments made to both wages and pensions for workers. Under the agreement, CAW members would also contribute $30 a month to their health benefits. Decreasing wages to employees would not only decrease the gross amount of money employees are making, but would also help Chrysler increase their profit because of less wage expenses. So what happens to the thousands of employees if Chrysler's minivan assembly plant closes down? More than half will not be able to have a source of income for at least a month. So what should they do? They should just continue looking for a job because they still have "unemployment insurance". The unemployment insurance fund was created from deductions made from previous portions of their cheques for if they were to ever become unemployed. When the become unemployed while willing and able to accept employment, the worker is entitled to receive payments out of the fund.
Reflection:
I think Chrysler should just stick with the Canadian Auto Worker's ideas of following the plan of pattern bargaining, like the one that General Motors accepted earlier in this month. It seems like a great idea that will benefit the thousands of workers, Chrysler customers, and the corporation of Chrysler itself. If Chrysler so happens to not come to an agreement and decides to pull out from Canada, i see a deepened recession that will be eventually lead towards a depression that will be even harder for the world's economy to get out of. So, cross your fingers, and if you have not started saving money, i suggest that you start now. When will our economy recover?
Summary:
The economy is now in recession and companies and workers are suffering. Here is another case. As you might have heard, Chrysler's minivan assembly plant in Windsor, Ontario, has laid off many employees and has plans to close down the plant as well. Closing down the plant would include the layoff of more than 5000 workers! This is why Chrysler and the Canadian Auto Workers (CAW) will begin talk aiming at reaching an agreement on worker concessions in advance of a looming deadline for the troubled automaker to receive billions in emergency loans from the Canadian and U.S government. The two sides both have different ideas on what the plan should be in order to get them out of the trouble they are in. The CAW believe that the union should stick to pattern bargaining, meaning it will ask Chrysler to accept a deal similar to the one that General Motors accepted upon earlier in this month. Chrysler described the plan as "unacceptable" to Chrysler, and threatened a complete pullout from Canada if the company did not get what it needs from workers and the government. The CAW hope an agreement can be made by the end of the week.
Connection:
Wages and Unemployment Insurance Deductions were the connections i made between the article and chapter 16. The CAW believes that Chrysler should stick with pattern bargaining, which includes the freezing of wages until 2012 and adjustments made to both wages and pensions for workers. Under the agreement, CAW members would also contribute $30 a month to their health benefits. Decreasing wages to employees would not only decrease the gross amount of money employees are making, but would also help Chrysler increase their profit because of less wage expenses. So what happens to the thousands of employees if Chrysler's minivan assembly plant closes down? More than half will not be able to have a source of income for at least a month. So what should they do? They should just continue looking for a job because they still have "unemployment insurance". The unemployment insurance fund was created from deductions made from previous portions of their cheques for if they were to ever become unemployed. When the become unemployed while willing and able to accept employment, the worker is entitled to receive payments out of the fund.
Reflection:
I think Chrysler should just stick with the Canadian Auto Worker's ideas of following the plan of pattern bargaining, like the one that General Motors accepted earlier in this month. It seems like a great idea that will benefit the thousands of workers, Chrysler customers, and the corporation of Chrysler itself. If Chrysler so happens to not come to an agreement and decides to pull out from Canada, i see a deepened recession that will be eventually lead towards a depression that will be even harder for the world's economy to get out of. So, cross your fingers, and if you have not started saving money, i suggest that you start now. When will our economy recover?
Tuesday, March 3, 2009
Accounting 12 - Chapter 15
Link :
http://money.cnn.com/2009/03/03/news/companies/chrysler_viper.reut/index.htm?postversion=2009030317
Summary:
The Dodge Viper. It is a V10-powered sports car manufactured by the Dodge division of Chrysler LLC. Chrysler LLC is recently in discussions with two to three companies for the possible sale of the Dodge Viper sports car line, but the economic recession has slowed the process. But why sell this unique car to another company? The answer is simple, “Chrysler is exploring the sale of the Viper business in efforts to generate cash and ride out the deepening U.S. auto industry downturn.” Chrysler has had a 169% increase of sales of the Viper from the previous years, but recently, they have been struggling along with other automakers through the downturn in U.S. auto sales. Chrysler tries to seem calm by saying that they “are not in a big hurry to [sell the] Viper.” U.S. auto sales have declined 44% in February.
Connections:
1) Auto sales are declining and will continue to decline.
2) Gas prices are rising, and the demand for V10-powered, fuel-eating sports cars are declining.
As for now, if Chrysler sells their Viper, they will benefit for the next couple of years. But if the economy turns around in a couple of years, the company that purchased the Viper, assuming they do not go bankrupt, will benefit.
http://money.cnn.com/2009/03/03/news/companies/chrysler_viper.reut/index.htm?postversion=2009030317
Summary:
The Dodge Viper. It is a V10-powered sports car manufactured by the Dodge division of Chrysler LLC. Chrysler LLC is recently in discussions with two to three companies for the possible sale of the Dodge Viper sports car line, but the economic recession has slowed the process. But why sell this unique car to another company? The answer is simple, “Chrysler is exploring the sale of the Viper business in efforts to generate cash and ride out the deepening U.S. auto industry downturn.” Chrysler has had a 169% increase of sales of the Viper from the previous years, but recently, they have been struggling along with other automakers through the downturn in U.S. auto sales. Chrysler tries to seem calm by saying that they “are not in a big hurry to [sell the] Viper.” U.S. auto sales have declined 44% in February.
Connections:
The insiders and the outsiders of a company, and trend analyses were the connections I made between the article and chapter 15. The insiders, Chrysler, had to study their financial statements thoroughly and look at how the economy was doing in order to make key decisions about their company. In this article's case, Chrysler came to the decision that they wanted and probably needed to sell the Viper in order to survive the U.S. automobile industry downturn. The two to three companies interested in buying the Viper, the outsiders, had to analyze Chrysler's financial statements, and look at how the sales industry was doing in order to see if the Viper was worth purchasing or not. The outsiders are always looking for something that will grow in the future and something that will become very profitable. The last connection I made was the use of trend analyses. Chrysler uses presents their financial data as very well (ie. 169% sales increase from previous years), but it does not also show that U.S. auto sales have also declined 44% in February alone.
Reflection:
SELL SELL SELL! If Chrysler sells their Viper to another company, they will most likely ride out the deepening U.S. auto industry downturn. In general terms, Chrysler will actually benefit from the sale of their Viper for now. As for the company that purchases the Viper, I believe they will be in even harder times as the sales of automobiles have declined 44% in February alone. I think Chrysler is selling the Viper only because of the following reasons:1) Auto sales are declining and will continue to decline.
2) Gas prices are rising, and the demand for V10-powered, fuel-eating sports cars are declining.
As for now, if Chrysler sells their Viper, they will benefit for the next couple of years. But if the economy turns around in a couple of years, the company that purchased the Viper, assuming they do not go bankrupt, will benefit.
Friday, November 21, 2008
Accounting 12 - Chapter 14
Link: http://www.cbc.ca/consumer/story/2008/09/11/credit-fees.html
Summary:
On September 11, 2008, the public was notified about credit card companies gouging retailers with transaction fees that cost $4.5 billion in 2007 - and the costs being trickled down to consumers. A newly formed group campaign called "Stop Sticking it to Us" was against the credit card companies, and gave us information about these companies. They estimated that nearly $2 of every $100 Canadians spent using credit cards went directly to Visa and MasterCard, and their issuing banks. Most of money comes from so-called "interchange fees" that Visa and MasterCard banks collect from merchants every time a credit or debit card is used to pay for a purchase. The fees vary depending on the type of card, the size of merchant, but the fees are calculated as a percentage of the transaction. The council pointed out that the interchange fees were not only a problem for merchants, but for consumers as well as the fees would eventually trickle down to them. The money earned from interchange fees goes to cover the cost of credit card incentive programs, corporate credit card benefits, and junk mail. A result and comparison of these types of fees having an impact on merchants and consumers was that "a member of the Stop Sticking it to Us campaign, in one month saw their processing fees.. increase by over $1200." Additional information that you might want to know is that the personal credit card fees increased from 1.6 to 1.7%, and business fees increased significantly.
Connections:
The connection I made between the article and chapter 14 is Credit Card Charges. When the merchant is paid by the consumer with a credit card, the credit card company such as Visa or MasterCard, gets a portion of the gross amount of the credit card transaction. This portion is accumulated by a certain percentage (in the article's case, 1.7%) , and the credit card company gets this amount of cash for every transaction received by a retailer from a consumer using their credit card. Another connection I made was that in both the article and chapter 14, it both noted that "credit cards are more cost-effective than handling cash, and are used so much in today's society that we can visualize a society without money - a cashless society".
Reflection:
After the article about credit card company fees being unreasonable, the day after, credit card company, Visa stated that its interchange rates were reasonable. After careful analysis, I have concluded that the fees charged by credit card companies are reasonable! I think they are reasonable because as today's society is using more and more credit cards instead of cash, companies can charge high prices, but still reasonable price as the demand for credit cards are rising instead of the use of cash. My opinion about the consumer's credit card charges rising by over $1200 can be bias as we only know HE is the only one that had his credit charges go up. Personally this is not an issue for me now as I do not use credit cards, but it might be an issue for me as i get older and start using a credit card. If the fees get too high, then it might be a problem we will want to resolve now! How high are you willing to pay for the use of credit cards?
Summary:
On September 11, 2008, the public was notified about credit card companies gouging retailers with transaction fees that cost $4.5 billion in 2007 - and the costs being trickled down to consumers. A newly formed group campaign called "Stop Sticking it to Us" was against the credit card companies, and gave us information about these companies. They estimated that nearly $2 of every $100 Canadians spent using credit cards went directly to Visa and MasterCard, and their issuing banks. Most of money comes from so-called "interchange fees" that Visa and MasterCard banks collect from merchants every time a credit or debit card is used to pay for a purchase. The fees vary depending on the type of card, the size of merchant, but the fees are calculated as a percentage of the transaction. The council pointed out that the interchange fees were not only a problem for merchants, but for consumers as well as the fees would eventually trickle down to them. The money earned from interchange fees goes to cover the cost of credit card incentive programs, corporate credit card benefits, and junk mail. A result and comparison of these types of fees having an impact on merchants and consumers was that "a member of the Stop Sticking it to Us campaign, in one month saw their processing fees.. increase by over $1200." Additional information that you might want to know is that the personal credit card fees increased from 1.6 to 1.7%, and business fees increased significantly.
Connections:
The connection I made between the article and chapter 14 is Credit Card Charges. When the merchant is paid by the consumer with a credit card, the credit card company such as Visa or MasterCard, gets a portion of the gross amount of the credit card transaction. This portion is accumulated by a certain percentage (in the article's case, 1.7%) , and the credit card company gets this amount of cash for every transaction received by a retailer from a consumer using their credit card. Another connection I made was that in both the article and chapter 14, it both noted that "credit cards are more cost-effective than handling cash, and are used so much in today's society that we can visualize a society without money - a cashless society".
Reflection:
After the article about credit card company fees being unreasonable, the day after, credit card company, Visa stated that its interchange rates were reasonable. After careful analysis, I have concluded that the fees charged by credit card companies are reasonable! I think they are reasonable because as today's society is using more and more credit cards instead of cash, companies can charge high prices, but still reasonable price as the demand for credit cards are rising instead of the use of cash. My opinion about the consumer's credit card charges rising by over $1200 can be bias as we only know HE is the only one that had his credit charges go up. Personally this is not an issue for me now as I do not use credit cards, but it might be an issue for me as i get older and start using a credit card. If the fees get too high, then it might be a problem we will want to resolve now! How high are you willing to pay for the use of credit cards?
Thursday, October 30, 2008
Accounting 12 - Chapter 12
Link: http://www.cbc.ca/consumer/story/2008/10/29/pe-gas-discounts.html
Summary:
Recently, on Prince Edward Island, Wilsons Fuel has been told by the provincial regulator to stop giving a two-cent-a-litre discount to consumers who pay cash for gasoline. The island regulator was responding to the complaints that the discounts at Wilsons Fuel was charging less than the regulated minimum price for gas. The area manger Doug MacDonald saw no problems in offering his discounts because he saw it similar to other gas stations such as Petro Points at Petro Canada, and Esso Extra Points at Esso. The reason why giving such a discount like the one at Wilsons Fuel is bad is because the discount lowers the prices of gas below minimum price, and it eliminates the charges that would otherwise go to the credit card company for the costumer using the credit card. In the recent ruling of this week, IRAC disagreed that the cash discounts is in the same category as other incentive programs (such as Petro Points), and ordered a stop. The Legislation allows incentives, but not direct cash discounts. Wilsons Fuel will have to find another way to offer its customers a discount.
Connections:
The connections I made between the article and chapter 12 is Cash Discounts. Wilsons Fuels was trying to give a discount to those who paid cash for gasoline, and it connects to how cash discounts are a reduction of the amount of a bill if payment is made on or before the discount date stated on the bill. In Wilsons Fuels' case, all they did was give a discount to their customers for paying cash, which is technically on time (Cash on Delivery).
Reflection:
I myself do not see any differences between giving a discount for paying cash for gasoline and giving incentives at other gas stations like Petro Points at Petro Canada. Either way, they both reduce the prices of gasoline and is a plus for the consumers. I agree with Doug MacDonald point of view, who said what they were trying to do was offer that money (from credit card charges) back to the customer, which the customers would have to pay to the credit card companies for using their credit card otherwise. Finally, relating to the discounts on gas prices, I believe that regulations for gas prices should not be so strict because gas prices are high enough as it is, and a few cents off per litre will not hurt anybody. What world has it become where money has became the main thought of the world?
Summary:
Recently, on Prince Edward Island, Wilsons Fuel has been told by the provincial regulator to stop giving a two-cent-a-litre discount to consumers who pay cash for gasoline. The island regulator was responding to the complaints that the discounts at Wilsons Fuel was charging less than the regulated minimum price for gas. The area manger Doug MacDonald saw no problems in offering his discounts because he saw it similar to other gas stations such as Petro Points at Petro Canada, and Esso Extra Points at Esso. The reason why giving such a discount like the one at Wilsons Fuel is bad is because the discount lowers the prices of gas below minimum price, and it eliminates the charges that would otherwise go to the credit card company for the costumer using the credit card. In the recent ruling of this week, IRAC disagreed that the cash discounts is in the same category as other incentive programs (such as Petro Points), and ordered a stop. The Legislation allows incentives, but not direct cash discounts. Wilsons Fuel will have to find another way to offer its customers a discount.
Connections:
The connections I made between the article and chapter 12 is Cash Discounts. Wilsons Fuels was trying to give a discount to those who paid cash for gasoline, and it connects to how cash discounts are a reduction of the amount of a bill if payment is made on or before the discount date stated on the bill. In Wilsons Fuels' case, all they did was give a discount to their customers for paying cash, which is technically on time (Cash on Delivery).
Reflection:
I myself do not see any differences between giving a discount for paying cash for gasoline and giving incentives at other gas stations like Petro Points at Petro Canada. Either way, they both reduce the prices of gasoline and is a plus for the consumers. I agree with Doug MacDonald point of view, who said what they were trying to do was offer that money (from credit card charges) back to the customer, which the customers would have to pay to the credit card companies for using their credit card otherwise. Finally, relating to the discounts on gas prices, I believe that regulations for gas prices should not be so strict because gas prices are high enough as it is, and a few cents off per litre will not hurt anybody. What world has it become where money has became the main thought of the world?
Sunday, October 5, 2008
Accounting 12 - Chapter 11
Link: http://www.cnn.com/2008/WORLD/asiapcf/10/05/china.milk/index.html
Summary:
An event that occurred in Hong Kong, China, was candy filled high levels of melamine. Basically the article is about how the Hong Kong authorities on Sunday October 5, 2008 have announced that two recalled candy products made by British confectioners, Cadbury had high levels of melamine. What is melamine, you ask? Melamine is a white chemical crystalline compound (C3H6N6) used in making melamine resins, and to bolster apparent protein levels in diluted or poor-quality milk. Melamine has been recently been found in the Chinese-made milk products that have sickened nearly 53,000 children in China, killing four. So far, countries have banned the import of Chinese milk products, or anything that contains milk from China. Last week, Cadbury recalled all of its Chinese-made candy products after tests have shown they contained amounts of melamine. Spokesman Tony Bilsborough said they took the action because, "no level of melamine is appropriate". The test results of their products showed that their Dairy Milk Hazelnut Chocolate contained 25 times the acceptable 2.5 ppm (parts per million) amount of melamine, and their Dairy Milk Cookies Chocolate contained more than twice the legal limit of melamine. The same melamine has been used in milk a month ago in an attempt to sell more of it, and in order to fool quality checks. So far, authorities have arrested 40 people in connection with the scandal, including two brothers who could face the death penalty if convicted.
Connections:
The connections I made between the article and chapter 11 is Merchandise Returns and Allowances, and COGS. People who have found the product unsatisfactory or unhealthy in this case, can get a refund on the product that they bought which has to do with returns and allowances. With vast amounts of the useless candy, chocolate, and milk which will have to be included on the income statement as COGS (goods that are lost, broken, or stolen), the company will have a large amount of returns and allowances that they will have to give back to their customers, and because of the possible law suits that may occur, I predict Cadbury will go out of business.
Reflection:
Although the article talks a lot about how China has had melamine in two companies now (one in milk products, and one in candy products), the article or other news stories does not talk about any law suits that the people in China have against the companies. I think this is idiotic because if this happened in Canada two times within a month, the people in Canada would be outraged! The comparison I make between Canada's government and China's government is that Canada thinks lives are precious, and China's government thinks lives are not precious because of the gigantic population of people in China. If Canada or the United States were to make a move saying that what China is doing is wrong (which we will not), China would cut off all exports to Canada or the United States. When will China's government finally make a stop to the poor products the companies in China are making?
Summary:
An event that occurred in Hong Kong, China, was candy filled high levels of melamine. Basically the article is about how the Hong Kong authorities on Sunday October 5, 2008 have announced that two recalled candy products made by British confectioners, Cadbury had high levels of melamine. What is melamine, you ask? Melamine is a white chemical crystalline compound (C3H6N6) used in making melamine resins, and to bolster apparent protein levels in diluted or poor-quality milk. Melamine has been recently been found in the Chinese-made milk products that have sickened nearly 53,000 children in China, killing four. So far, countries have banned the import of Chinese milk products, or anything that contains milk from China. Last week, Cadbury recalled all of its Chinese-made candy products after tests have shown they contained amounts of melamine. Spokesman Tony Bilsborough said they took the action because, "no level of melamine is appropriate". The test results of their products showed that their Dairy Milk Hazelnut Chocolate contained 25 times the acceptable 2.5 ppm (parts per million) amount of melamine, and their Dairy Milk Cookies Chocolate contained more than twice the legal limit of melamine. The same melamine has been used in milk a month ago in an attempt to sell more of it, and in order to fool quality checks. So far, authorities have arrested 40 people in connection with the scandal, including two brothers who could face the death penalty if convicted.
Connections:
The connections I made between the article and chapter 11 is Merchandise Returns and Allowances, and COGS. People who have found the product unsatisfactory or unhealthy in this case, can get a refund on the product that they bought which has to do with returns and allowances. With vast amounts of the useless candy, chocolate, and milk which will have to be included on the income statement as COGS (goods that are lost, broken, or stolen), the company will have a large amount of returns and allowances that they will have to give back to their customers, and because of the possible law suits that may occur, I predict Cadbury will go out of business.
Reflection:
Although the article talks a lot about how China has had melamine in two companies now (one in milk products, and one in candy products), the article or other news stories does not talk about any law suits that the people in China have against the companies. I think this is idiotic because if this happened in Canada two times within a month, the people in Canada would be outraged! The comparison I make between Canada's government and China's government is that Canada thinks lives are precious, and China's government thinks lives are not precious because of the gigantic population of people in China. If Canada or the United States were to make a move saying that what China is doing is wrong (which we will not), China would cut off all exports to Canada or the United States. When will China's government finally make a stop to the poor products the companies in China are making?
Wednesday, October 1, 2008
The New Seating Changes
The financial accounting 12 group has invaded the accounting 12's personal space and they shall regret it because all actions shall be made to PROCECUTE them (Jason,Kyron,and Cameron). They have moved from the window seats to directly infront of me and my companions. This is an outrage! I hope they see this......
SAVE MEEEEEEEE!!!!
-P. Ngo
SAVE MEEEEEEEE!!!!
-P. Ngo
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